16 Group accounts
‘The suggestion that we were pursuing consolidation as a replacement for reaching our financial targets by 2018 is fundamentally a bunch of hogwash’
Sergio Marchionne, former CEO of Fiat Chrysler Automobiles
In a nutshell
Group accounts show the financial results of a group of companies. A group comprises a parent company and at least one subsidiary. A subsidiary is a company controlled by another company (i.e. parent).
Company law (and accounting standards) requires a parent company to combine its own financial results with those of its subsidiaries to present group accounts, as if it were a single entity.
The process of combining results is known as group accounting or consolidation. Adding together (consolidating) each ...
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